Economics was Expressed as Religion, the "Cross of Gold"
He thought, correctly, that part of the country's depressions during that period happened because there wasn't enough money. There wasn't enough money because it was limited by the amount of gold available. Bryan wanted silver to be monetized so the money supply would be increased. About 30 years later the government figured out it could create money in for form of bank accounts by the stroke of a pen. The pen or computer created reserve allowing bank to loan more and the money supply increased. It can also be decreased. These increases (and decreases) in the supply of money depend on bank customers applying for loans. It doesn't always work. There are other things involved as well.
What is interesting was Bryan's metaphor, the cross and being crucified. Tossing something in about religion is always good politics.
And then there is inserting economics into religion. The branch of Christianity, Protestant and Catholic, that talks about "social justice" is about economics. We all know how income and wealth are distributed in an economy determine health and welfare. I once heard a preacher devote a sermon to the "immoral practice" of government debt. He saw it as spending today and forcing future generations to pay. Inside economics deficit spending is seen as both good and bad, depending on the circumstances. Today there is large deficit spending going on and it's hard to see it as some kind of bad moral standard.
Another religious slant is espoused by current religious conservatives. They are opposed to "socialism". It baffles me what this has to do with religion or what they mean by it--a good share of our economy is government today.
The Bible gives us advice about what is an honest way to earn money. Collecting interest does not qualify.
Religion, economics and societal values are all woven together tightly. Put a hole in one and the other bleeds.
are you familiar with Modern Monetary Theory. if so, maybe you could comment on it.
ReplyDeleteUnknown "are you familiar with Modern Monetary Theory. if so, maybe you could comment on it."
DeletePerhaps I can claim I'm "familiar" with it, but I don't claim to be an expert. An overview would be that, politically, conservative business people and politicians like monetary theory but dislike fiscal theory/policy. The latter is what we would call Keynesian theory. Way back in time gold standard was a crude monetary policy. It was to manage the economy through the amount of money. This became more sophisticated in the 1930's when the Federal Reserve was created and it eventually began creating destroying bank reserves trying to influence expansion and control inflation. In more modern times we have had the late Milton Friedman who claimed if the money supply were increase at the same rate as population and business expanded we would have permanent prosperity. This has largely been abandoned. Then came Paul Volker who managed a draconian increase in interest rates during the Vietnam War to hold back inflation. In retrospect that was a smart move, though hated by borrowers at the time. Today, monetary policy seems sort of benign, not much happening. Interest rates are about zero and it doesn't affect things much. The most recent splurges in spending to help the economy were, as you know, fiscal policy not monetary policy.
thanks
ReplyDeleteAs to W.J. Bryan, he, of course, would have used Christian imagery. He was, after all, a fundamentalist of sorts. Remember that he took on Darrow at the famous (infamous?} Scope's trial. BTW, he was (no surprise) considered a demagogue by the "establishment" of the time. As you may recall, the US was suffering from The Cleveland depression of 1893-94, partly as a result of dogmatic adherence to the gold standard. McKinley lucked out, however. Got a gold rush that increased the gold supply and expanded the money supply.
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